1 SWAINSBORO TECHNICAL COLLEGE i SWAINSBORO, GEORGIA MANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30,2009 I A Member College of the Technical I College System of Georgia ,- . .-,<-.ii.& 7 & Audits Ga d Agccou~nts ~ -- -- I Russell W.Hinton - - State Auditor SWAINSBORO TECHNICAL COLLEGE - TABLE OF CONTENTS - SECTION I FINANCIAL LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHIBITS A STATEMENT OF NET ASSETS - (GAAP BASIS) B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS) C STATEMENT OF CASH FLOWS - (GAAP BASIS) D SELECTED FINANCIAL NOTES SUPPLEMENTARY INFORMATION SCHEDULES 1 BALANCE SHEET - (STATUTORY BASIS) - BUDGET FUND 2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) BUDGET FUND 3 STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET (STATUTORY BASIS) BUDGET FUND 4 RECONCILIATION OF SALARIES AND TRAVEL SECTION I1 FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SECTION I FINANCIAL Russell W. Hinton STATE AUDITOR (404) 656-2174 DEPARTMENOTF AUDITSAND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 September 11,2009 Honorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board of Directors and Honorable Ronald Jackson, Commissioner Technical College System of Georgia Swainsboro Technical College Ladies and Gentlemen: As part of our audit of the basic financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2009, we have performed certain audit procedures at Swainsboro Technical College. Accordingly, the financial statements and compliance activities of Swainsboro Technical College were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. This Management Report contains information pertinent to the financial and compliance activities of Swainsboro Technical College as of and for the year ended June 30,2009. Information contained in this report is a by-product of our audit of the basic financial statements of the State of Georgia and is the representation of management. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.1 1.1, is enumerated in the Table o'f Contents. This report is intended solely for the information and use of management of Swainsboro Technical College, members of the Local Board of Directors, and the Southern Association of Colleges and Schools - Commission on Colleges and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, ~u'ssellW. Hinton, CPA, CGFM State Auditor SELECTED FINANCIAL INFORMATION SWAINSBORO TECHNICAL COLLEGE STATEMENT OF NET ASSETS - (GAAP BASIS) JUNE 30,2009 ASSETS Current Assets Cash and Cash Equivalents Accounts Receivable Federal Financial Assistance Other Total Current Assets Noncurrent Assets Capital Assets, Net Total Assets LIABILITIES Current Liabilities Salaries Payable Accounts Payable Deferred Revenue Funds Held for Others Compensated Absences Other Liabilities Total Current Liabilities Noncurrent Liabilities Compensated Absences Total Liabilities NET ASSETS Invested in Capital Assets, Net of Related Debt Unrestricted (Deficit) Total Net Assets EXHIBIT " A SWAINSBORO TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS) YEAR ENDED JUNE 30,2009 EXHIBIT " B OPERATING REVENUES Student Tuition and Fees Less: Scholarship Allowances Grants and Contracts Federal Rents and Royalties Sales and Services Total Operating Revenues OPERATING EXPENSES Salaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Sewices Depreciation Total Operating Expenses Operating lncome (Loss) NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal Gifts Interest and Other Investment lncome Other Nonoperating Expenses Net Nonoperating Revenues lncome (Loss) Before Other Revenues, Expenses, Gains, or Losses Capital Grants and Gifts State Nongovernmental Total Other Revenues, Expenses, Gains, or Losses Increase (Decrease) in Net Assets Net Assets - Beginning of Year Net Assets - End of Year (This page left intentionally blank) SWAINSBORO TECHNICAL COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS) YEAR ENDED JUNE 30,2009 CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments) Net Cash Provided (Used) by Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts Net Cash Flows Provided (Used) by Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Grants and Gifts Received Purchases of Capital Assets Net Cash Provided (Used) by Capital and Related Financing Activities CASH FLOWS FROM INVESTING ACTIVITIES Intereston Investments Net Increase (Decrease) in Cash Cash and Cash Equivalents- Beginning of Year Cash and Cash Equivalents- End of Year RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES: Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Accounts Receivable Prepaid Items Accounts Payable Salaries Payable Deferred Revenue Other Liabilities Compensated Absences Net Cash Provided (Used) by Operating Activities NONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts EXHIBIT "C" SWAINSBORO TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2009 EXHIBIT "D" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY Swainsboro Technical College is one of thirty-three (33) State supported member colleges of postsecondary education in Georgia which comprise the Technical College System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Swainsboro Technical College as a separate reporting entity. The Technical College's Local Board of Directors is composed of nine (9) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Technical College System of Georgia by the General Assembly of Georgia. The System Office of the Technical College System of Georgia determines the amount of State appropriations to be received by Swainsboro Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Swainsboro Technical College is considered an organizational unit of the Technical College System of Georgia for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2 100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. NET ASSETS The Technical College's net assets are classified as follows: Invested in capital assets, net of related debt: This amount represents the Technical College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. Unrestricted net assets: Unrestricted net assets represent available resources derived from student tuition and fees, state appropriations, and sales and services of educational departments. These resources will be used for transactions relating to the educational and general operations of the Technical College, and may be used at the discretion of the governing board to meet subsequent fiscal year expenses for those purposes, except for unexpended state appropriations (surplus) of $1,238.70. Unexpended state appropriations must be refunded to the Technical College System of Georgia for remittance to the Office of Treasury and Fiscal Services. NOTE 2: DEPOSITS DEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the Technical College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the Technical College) cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: SWAINSBORO TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2009 EXHIBIT "DM NOTE 2: DEPOSITS DEPOSITS 1. Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia. 2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. 3. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. 4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. 5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies, which allows agencies of the State of Georgia (and thus Swainsboro Technical College), the option of exempting demand deposits from the collateral requirements. At June 30, 2009, the carrying value of deposits was $374,740.03 and the bank balance was $564,716.71. Of the Technical College's deposits, $311,721.18were uninsured. Of these uninsured deposits, $311,721.18were collateralized with securities held by the financial institution, by its trust department or agency, but not in the Technical College's name. NOTE 3: ACCOUNTS RECEIVABLE Accounts receivable at June 30,2009, consists of the following: Student Tuition and Fees Federal, State and Private Funds GSFIC Other Total Accounts Receivable SWAINSBORO TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2009 EXHIBIT "D" NOTE 4: CAPITAL ASSETS Following are the changes in capital assets for the year ended June 30,2009: Balance July 1,2008 Additions Reductions Balance June 30,2009 Capital Assets, Not Being Depreciated: Land and Land Improvements $ 211,641.00 $ 0.00 $ 0.00 $ 21 1.641.00 Capital Assets, Being Depreciated: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections $ 7,761,087.07 734,840.00 2,015,585.43 $ 474,415.45 85,003.25 $ 18,609.97 $ 7,761,087.07 734,840.00 20,035.00 2,080,553.68 20,620.56 472.404.86 Less: Accumulated Depreciation: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections $ 1,841,746.72 $ 608,284.17 1,582,416.17 197.420.67 195,040.45 48,989.33 177,126.95 $ 49.655.90 $ 2,036,787.17 657,273.50 20,139.86 1,739,403.26 20.620.56 226,456.01 Total Capital Assets, Being Depreciated, Net $ 6.756.060.22 $ -367,199.41 $ Capital Assets, Net $ 6967JOi.Z $ -367.199.41 $ -104.86 $ 6,388,965.67 -1 04.86 $ 6.600.606.67 NOTE 5: DEFERRED REVENUE Deferred revenue at June 30,2009, consists of the following: Prepaid Tuition and Fees Other Deferred Revenue Totals NOTE 6: LONG-TERM LIABILITIES Long-Term liability activity for the year ended June 30,2009 was as follows: Other Liabilities CompensatedAbsences Balance July 1.2008 Additions Reductions Balance June 30,2009 Current Portion $ 513,747.70 $ 354355.44 $ 432,760.94 $ 437.352.22 $ 216,223U SWAINSBORO TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2009 EXHIBIT "D" NOTE 7: NET ASSETS Changes in Net Asset activity for the year ended June 30,2009 was as follows: Invested in Capital Assets Net of Related Debt Unrestricted Net Assets Total Net Assets Balance July 1,2008 Additions Reductions Balance June 30.2009 $ 6,967,701.22 $ -367,199.41 $ -104.86 $ 6,600,606.67 -147,777.38 8,071,713.69 7,95 1,712.22 -27.775.91 $ 6.8 19,923.84 $ 7.704.5 14.28 $ 795 1,60736 $6.572.830,7! NOTE 8: LEASE OBLIGATIONS OPERATING LEASES Swainsboro Technical College has entered into certain agreements to lease equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term of the lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised. Expenses for rental of equipment under operating leases for the year ended June 30,2009, totaled $18,7 10.60. SUMMARY OF LEASE OBLIGATIONS Future commitments for capital leases (which here and on the Statement ofNet Assets include other installment purchase agreements) and for noncancellable operating leases having remaining terms in excess of one year as of June 30,2009, were as follows: Year Ending June 30 20 10 201 1 Operating Leases Total Minimum Lease Payments $ 16,053.64 NOTE 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Plan Description Swainsboro Technical College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the SWAINSBORO TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2009 EXHIBIT "D" NOTE 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Plan Description State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. Funding Policy Employees of Swainsboro Technical College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. Swainsboro Technical College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2009, the employer contribution rate was 9.28% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA Plan Description Swainsboro Technical College participates in the Employees' Retirement System of Georgia (ERS), a single-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. The ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 4 15 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415. The benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are "new plan" members subject to the modified plan provisions. Effective January 1, 2009, newly hired State employees, as well as rehired State employees who did not SWAINSBORO TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2009 EXHIBIT "DM NOTE 9: RETIREMENT PLANS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA Plan Description maintain eligibility for the "old" or "new" plan, are members of the Georgia State Employees' Pension and Savings Plan (GSEPS). ERS members hired prior to January 1, 2009 also have the option to change their membership to the GSEPS plan. Under the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. Retirement benefits paid to members are based upon a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to members' benefits provided the members were hired prior to July 1,2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. Funding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivisions, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The Technical College's payroll for the year ended June 30, 2009, for employees covered by ERS was $1,162,501.64. The Technical College's total payroll for all employees was $4,341,552.29. Member contribution rates are set by law. Member contributions under the old plan are 4% of annual compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old plan, the Technical College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Technical College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The Technical College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum hnding standards as provided by law. These Technical College contributions are not at any time refundable to the member or hislher beneficiary. SWAINSBORO TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2009 EXHIBIT "D" NOTE 9: RETIREMENT PLANS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA Funding Policy Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30,2009 financial report, which may be obtained through ERS. GEORGIA DEFINED CONTRIBUTION PLAN Plan Description Swainsboro Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $3,500.00 credited to hislher account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to hisher account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. The Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS. Contributions and Vesting Member contributions are seven and one-halfpercent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of SWAINSBORO TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2009 EXHIBIT I'D" NOTE 9: RETIREMENT PLANS GEORGIA DEFINED CONTRIBUTION PLAN Contributions and Vesting employment, the amount of the member's account is refundable upon request by the member. The Technical College's payroll for the year ended June 30,2009, for employees covered by GDCP was $183,991.20. The Technical College's total payroll for all employees was $4,341,552.29. Total contributions made by employees during fiscal year 2009 amounted to $13,799.67 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. NOTE 10: CONTINGENCIES Amounts received or receivable from grantor agenciesare subjectto audit and adjustmentby grantor agencies. This could result in refunds to the grantor agency for any expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although Swainsboro Technical College expects such amounts, if any, to be immaterial to its overall financial position. Litigation, claims and assessments filed against Swainsboro Technical College (an organizational unit of the Technical College System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30,2009. NOTE 11: POSTEMPLOYMENT BENEFITS The Technical College participates in two State of Georgia postemployment benefit plans, the Georgia Retiree Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices. Georgia Retiree Health Benefit Fund The Georgia Retiree Health Benefit Fund (GRHBF) is a cost-sharing multiple-employer defined benefit postemployment healthcare plan that covers retired employees of the State including all departments, agencies and local school systems. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the employees' health insuranceplan (including benefits for retirees) to the Board of Community Health (Board). SWAINSBORO TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2009 EXHIBIT "D" NOTE 11: POSTEMPLOYMENT BENEFITS Georgia Retiree Health Benefit Fund The contribution requirements of the plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rate is established to fund both the active and retired employee health insurance plans based on projected "pay-as-you-go" financing requirements. The combined rates for the active and retiree plans for the fiscal year ended June 30, 2009, were as follows: July 2008 - January 2009 February 2009 March 2009 - June 2009 22.165% of covered payroll for August - February Coverage 1.926% of covered payroll for March Coverage 0.000% of covered payroll for April - July Coverage No additional contribution was required by the Board for fiscal year 2009 nor contributed to GRHBF to prehnd retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other postemployment benefits and are subject to appropriation. The following table summarizes the Technical College's contributions to the health insurance plans for the years ending June 30,2009 and June 30,2008, (dollars in thousands): Required Contribution Percent Contributed State Employees' Assurance Department - OPEB State Employees' Assurance Department - OPEB (SEAD-OPEB)is a cost-sharing multiple-employer defined benefit postemployment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of the Employees' Retirement System. Contributions by plan members are established by the Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The Board of Trustees of the Employees' Retirement System establish employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1% of earnable compensation. For the fiscal year ended SWAINSBORO TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30,2009 EXHIBIT "D" NOTE 11: POSTEMPLOYMENT BENEFITS State Employees' Assurance Department - OPEB June 30,2009, contributions of ERS "old plan" members were 0.45% of earnable compensation, 0.22% ofwhich was paid by the employer. Contributions of ERS "new plan" members were 0.23% of earnable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30,2009 and June 30,2008. NOTE 12: SUBSEQUENT EVENTS Effective July 1,2009, Swainsboro Technical College and southeastern Technical College merged to become Southeastern Technical College. NOTE 13: AFFILIATED ORGANIZATIONS The Greater Swainsboro Technical College Foundation is a legally separate, tax exempt organization whose activities primarily support Swainsboro Technical College. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organizationsare Component Units. Therefore, the financial statements of this affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Swainsboro Technical College. (This page left intentionally blank) SUPPLEMENTARY INFORMATION SWAINSBOROTECHNICAL COLLEGE BALANCE SHEET (STATUTORY BASIS) BUDGET FUND JUNE 30.2009 ASSETS Cash and Cash Equivalents Accounts Receivable Federal Financial Assistance Other Prepaid Expenditures Total Assets LIABILITIESAND FUND EQUITY Liabilities Salaries Payable Accounts Payable Encumbrances Payable Deferred Revenue Funds Held for Others Other Liabilities Total Liabilities Fund Balances Reserved Federal Financial Assistance Live Work Projects Prior Year Local Funds Continuing Education Technology Fees Unreserved Surplus Total Fund Balances Total Liabilities and Fund Balances SCHEDULE "1" Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensivebasis of accounting other than generally accepted accounting principles. - 18- SWAINSBORO TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30.2009 SCHEDULE "2" REVENUES State Appropriation State General Funds Federal Funds Other Funds Total Revenues CARRY-OVER FROM PRIOR YEAR Transfer from Resewed Fund Balance Total Funds Available EXPENDITURES Adult Literacy Economic Development Technical Education Total Expenditures Excess of Funds Available over Expenditures FUND BALANCE JULY 1 Reserved Unresewed ADJUSTMENTS Prior Year PayableIExpenditures Prior Year ReceivablesIRevenue Unreserved Fund Balance (Surplus) Returned to Technical College System of Georgia Year Ended June 30,2008 Refunds to Grantors Federal FinancialAssistance Returned to Technical College System of Georgia Year Ended June 30,2008 Prior Year Reserved Fund Balance Included in Funds Available FUND BALANCE JUNE 30 BUDGET ACTUAL VARIANCE - FAVORABLE (UNFAVORABLE) SUMMARY OF FUND BALANCE Reserved Federal Financial Assistance Live Work Projects Prior Year Local Funds Continuing Education Technology Fees Total Resewed Unreserved Surplus Total Fund Balance Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulationsof the State of Georgia, which is a comprehensivebasis of accounting other than generally accepted accounting principles. SWAINSBORO TECHNICAL COLLEGE STATEMENTOF PROGRAM REVENUESAND EXPENDITURESBY FUNDING SOURCE COMPARED TO BUDGE1 (STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30.2009 Adult Literacy State Approprlatlon State General Funds Federal Funds Other Funds Total Adult Llteracy Orlglnal A~oro~riatlon Flnal Budget Current Year Revenues Funds Ava~lableCompared to Budget Prior Year Carry-Over Total FundsAva~lable Variance Posltive (Negative) Economic Development Other Funds Technical Education State Appropriation Stale General Funds Federal Funds Amencan Recovery and Relnveslment Act of 2009 Federal Funds Other Funds Total Technical Education Grand Totals - A l l Programs Statutory Bans financial information was prepared on a prescribed basis of accounting that demonstratescompl~ancewith budgetaty statutes and regulations of the State of Georg~a, wh~chis a comprehenstvebasls of accountlng other than generally accepted accountlng pr~nc~ples. -20- ExpendituresCompared to Budget Variance Positive Actual (Neqative) Actual Funds Available Over/(Under) Expend~tvres Prior Period Adlusbnents Other Adiustments Program Fund Balances Transfers Program Fund Balances Reserve Sur~lus Total Fund Balance (This page left intentionally blank) SWAINSBORO TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL YEAR ENDED JUNE 30,2009 SCHEDULE "4" Totals per Annual Supplement Accruals June 30,2009 June 30,2008 Compensated Absences June 30, 2009 June 30, 2008 Lag Salaries June 30,2009 June 30,2008 Agency Funds Unidentified Variance SALARIES $ 4,373,389.69 $ TRAVEL 67,190.57 SECTION TI FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SWAINSBORO TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS YEAR ENDED JUNE 30,2009 FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported. OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) No matters were reported.